High LeverageSignificant leverage makes earnings and solvency sensitive to interest-rate moves and credit losses. Over a multi-month horizon rising rates or refinancing needs could compress net interest spreads, constrain new lending, and increase default vulnerability.
Negative Operating Cash FlowNegative operating and free cash flows point to weak cash generation from core lending. Reliance on non-operating funding to service growth raises liquidity risk, limits flexibility for provisioning or capex, and can hamper sustainable expansion.
Funding-cost SensitivityAs an NBFC that funds lending via borrowings, margins hinge on cost-of-funds. Structural increases in borrowing costs or tighter wholesale credit could squeeze spreads and profitability over months, limiting ability to scale without higher risk or pricing.